Tier 1 Entprenure Visa share capital and goodwill

[imikhattak]

HI Guys. I have a question regarding the investment section.

I invested in the company by issuing £50,000 share capital but then I used most of it to purchases clients of other businesses and is shown as goodwill in the accounts. my bank closing balance was around £3000.

am I correct to assume that I have fulfilled the investment criteria as HO requirement is quit about how we use the invested money and as per HO requirement I did issue £50000 and this is reflected in the accounts and share certificates that I sent with my visa application.

Can someone please tell me if there would be any problem with my visa application

[zimba]

Your investment is NOT acceptable as you paid the previous owners and purchased the business from them. This means that you did not technically invested money in a business as the money ended up in the pockets of previous owner(s). Have you even read the guide or the rules ???? This is clearly mentioned as unacceptable

For the purposes of the above, ‘invested’ or ‘spent’ by your business ’excludes spending on all of the following:

....
2) buying the business from a previous owner,where the money ultimately goes to that previous owner (irrespective of whether it is received or held directly or indirectly by that previous owner) rather than into the business you have bought. This applies regardless of whether the money is channelled through the business en route to the previous owner. For example, by means of you or your business purchasing ‘goodwill’ or other assets which were previously part of the business you have bought,

Page 20 Tier 1E guide: https://www.gov.uk/government/uploads/s ... 4_2016.pdf

[imikhattak]

I did not buy his business. I am accountant and bought his clients which technically are assets of the previous company. it is same as if you are buying assets of someone rather the whole business.

[moongesture]

I did not buy his business. I am accountant and bought his clients which technically are assets of the previous company. it is same as if you are buying assets of someone rather the whole business.

Technically speaking Invest you made may had issue as described above by Zimba refer following para from PBB Policy Guidence

"buying the business from a previous owner, where the money ultimately goes to
that previous owner (irrespective of whether it is received or held directly ..........For example, by means of you or your business purchasing ‘goodwill’ or other assets which were previously part of the business you have bought,"

[zimba]

I did not buy his business. I am accountant and bought his clients which technically are assets of the previous company. it is same as if you are buying assets of someone rather the whole business.

Did you read the paragraph above ????

purchasing ‘goodwill’ or other assets which were previously part of the business you have bought

You did not invest in that business as the money went directly to the previous owner. That is not acceptable for award of points under Tier 1E rules. If you applied for extension, be aware that you are highly likely will be refused by HO.

[imikhattak]

so basically the share capital I issued wont satisfy the requirement of the business.

[moongesture]

so basically the share capital I issued wont satisfy the requirement of the business.

Again, In terms of Accounting Yes it is investment but in terms of 245D(c)(ii)(2) No.

[zimba]

so basically the share capital I issued wont satisfy the requirement of the business.

It does not satisfy the immigration rules for investment and award of points towards your extension. It is irrelevant that you issued shares and your company is in loss. Shares can be issued to anyone !